Two-Story Office Building with Development
For Sale
$3,999,900
101-74090 El Paseo, Palm Desert, CA 92260
Existing improvements and a buildable parcel provide dual-corridor commercial exposure.
Property Size12,870 SF
Price / SF$310.79
Days on Market59
Property Features for 101-74090 El Paseo
General Information
Standard status
Active
Size
12,870 SF
Zoning
D & D-O
Site & Location
Traffic Count
30,000 vehicles/day
Highway Access
Yes
Road Access
Yes
Additional Details
Land Use
office
Building Details
Buildings
1
Stories
2
Building Size
12,870 SF
Listing Agency:
Equity Union
(760) 574-2299
Listed By:
Richard MacMillan · License #01183445
(760) 574-2299
Source:
Exprealty
Added: Jun 13
Changed: Aug 9
Last Checked: Aug 10 at 9:23AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Equity Union
Investment Insights
Based on property information with market context.
The offering includes a two-story professional office building containing 12,870 SF, together with a vacant buildable parcel within a three-APN assemblage. Existing dedicated parking serves both buildings. The property is identified with D and D-O zoning, providing a defined planning framework for the site.
South-facing frontage along El Paseo is complemented by northern frontage and visibility from Highway 111, a major Coachella Valley commuter and commercial route with traffic counts exceeding approximately 30,000 vehicles per day. The additional parcel has a conceptual development plan showing an approximately 2,500 SF building footprint and up to 4,000 SF of additional two-story retail, office, or medical space, subject to buyer verification and City approvals. The property address is 101-74090 El Paseo, Palm Desert, CA.
South-facing frontage along El Paseo is complemented by northern frontage and visibility from Highway 111, a major Coachella Valley commuter and commercial route with traffic counts exceeding approximately 30,000 vehicles per day. The additional parcel has a conceptual development plan showing an approximately 2,500 SF building footprint and up to 4,000 SF of additional two-story retail, office, or medical space, subject to buyer verification and City approvals. The property address is 101-74090 El Paseo, Palm Desert, CA.
Key Highlights
- Existing 12, 870 SF two‑story professional office building
- Three‑APN assemblage with an additional buildable parcel along El Paseo
- South‑facing El Paseo frontage plus northern frontage on Highway 111
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$202,209
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
5.06%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$4,044,180
$4.0M
Cap Rate 7%
$2,888,700
$2.9M
Cap Rate 9%
$2,246,767
$2.2M
Market Conditions
NOI Build-Up for 12,870 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$295.0K $22.92/SF
− Vacancy
−$25.4K −$1.97/SF
EGI
$269.6K $20.95/SF
− OpEx
−$67.4K −$5.24/SF
NOI
$202.2K $15.71/SF
Area
Riverside County, CA
Vacancy
8.60%
Lease Rate
$22.92 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$4,044,180
Cap Rate 7%
$2,888,700
Cap Rate 9%
$2,246,767
Alternative Uses
Best Use
Office B
$2.89M
$2.53M – $3.37M
NOI $202,209 @ 7.0% cap · market cap 5.06%
Second Best
Retail
$2.64M
$2.31M – $3.07M
NOI $184,475 @ 7.0% cap · market cap 4.61%
Theoretical Best
Office A
$3.86M
$3.37M – $4.50M
NOI $269,894 @ 7.0% cap · market cap 6.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
30,000 VPD
Traffic count
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,517
Businesses Nearby
Explore this area
Business Placement
Demographics for 92260, CA
31,641
Population
21,659
Households
1.5
Avg Household Size
57
Median Age
38%
College-Educated
92%
High-School Grad
31.3 sq mi
ZIP Area
1,011
Density / Sq Mi
$72,252
Median Household Income
$41,810
Median Earnings
$1,654
Median Rent
$463,500
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Existing improvements and a buildable parcel provide dual-corridor commercial exposure.
Where is this office building located?
The property is located at 101-74090 El Paseo Palm Desert, CA.
What is the asking price?
The asking price for this property is $3,999,900.
What are key features of this property?
This property features: Existing 12, 870 SF two‑story professional office building; Three‑APN assemblage with an additional buildable parcel along El Paseo; South‑facing El Paseo frontage plus northern frontage on Highway 111
